INTERNATIONAL TRAVEL HOUSE -- ITHL

INTERNATIONAL TRAVEL HOUSE   BSE CODE 500213

Cmp 272 market cap 217 crores

Book value 92

ITHL commenced its operations in 1981 and has a full bouquet of travel services.  It is a part of the ITC group which owns around 61% stake in the company.

The client group of ITHL includes NDTV, Siemens, Citibank,HCL, ABN, Samsung, Essel Group,3M among others.

The services offered include corporate travel, car rentals, destination management, World Class Holidays, Conference management, Incentive group travel and foreign exchange.  The company owns a fleet of 900 cars which also includes outsourced ones.

ITHL has been appointed General Sales Agent of Globus/Cosmos, which is a leading Coach/Integrated travel company in the world with Holiday Programmes in US, Canada, Africa, Europe.  The company expects to leverage on this relationship to develop outbound leisure business.

The company is also focussing on Medical Tourism as one of its growth drivers.   It is now  also concentrating on Confernces and Exhibition business.  Travel Insurance also offers a good growth avenue.

MICE --- Meeting, Incentive, Conference and Exhibition tourism has picked up pace in recent years and the company is focussing on this segment.

FINANCIALS

YEAR	05	06	07	08	09	10	HY 11
SALES	47	60	74	79	104	108	68
NP	4.6	7	10.2	10.5	8.2	11.3	8.17

The company has shown steady growth in terms of sales and profits except for the hiccup in 09 due to global turmoil.

First Half for FY 11 has been excellent with company showing Sales of 68 crores against 46 cr for H1FY 10 and net profits of 8.17 crores vs 3.94 crores. Second half is usually better so the company should show net profits of around 18 crores which on an equity base of around 7.99 crores gives an EPS of around 22 which at cmp of around 272 gives a PE of around  12.4 which for an ITC promoted company with good growth prospects looks attractive.  ITHL is practically a debtfree company.

ITHL is a smaller player as compared to Cox and Kings and Thomas Cook but looking at strong parentage of ITC and recent developments, if the company manages to continue the growth shown in recent quarters, there might be a case for a rerating.